By Jonathan Spicer and Ece Toksabay
ISTANBUL, April 26 (Reuters) – The Turkish lira fell to near an all-time low on Monday as relations with the United States took a chill, and after the new central bank chief signaled that rate hikes would hurt the economy.
The currency TRYTOM = D3, one of the worst performers in emerging markets this year, weakened a whopping 0.6% to 8.48 against the dollar, close to the low water point in 2021 and closer to the record of 8.58 at the beginning. November was reached.
“Market negativity is intense. (The) risk of overshoot delivery is unfortunately increased,” Robin Brooks, chief economist at the Institute of International Finance, said on Twitter.
The lira lost 3.5% in the past three trading days when it became clear that US President Joe Biden would officially recognize the 1915 massacres of Armenians in the Ottoman Empire as genocide.